Sydney and Melbourne housing markets are “on track for a soft landing”. Long span of economic growth, 27 consecutive years, is likely to continue. The Organisation for Economic Co-operation and Development says Australia’s long span of economic growth, 27 consecutive years, is likely to continue.

In its latest Australian economic survey, the OECD says: “Life is good, with high levels of well-being, including health and education. Robust economic growth is set to continue. “New capacity coming on stream in the resources sector will support exports and business investment will pick up. Growth of wages and prices will rise gradually, while the unemployment rate will edge lower.”

The OECD says the most likely outcome for the housing market in the biggest cities is a soft landing and that a housing crash is unlikely. But it says the housing market could pose a risk to the nation’s economic growth going forward. “Financial supervisors and bank regulators should be prepared in the event of a hard landing in the housing market,” the report says. “High indebtedness of households remains a risk.”